Fairtrade Access Fund (FAF)

AgriFI invested € 5 million in the Incofin Fairtraide Access Fund to support its growth strategy in Africa. By expanding its scope to numerous countries, the FAF targets to contract 500+ new loans to empower 200,000+ smallholder farmers by 2022.

Project overview

The Fairtraide Access Fund is an impact fund created in 2012 to address the financial needs of smallholder farmers by providing better access to financing. The fund is active in 19 countries with a fund size of EUR 51m (2019).

The Fund invests in Fairtrade or sustainable certified smallholders by providing loans and offering technical assistance. As a result, the Fund contributes to the development of a fair and sustainable agriculture, with a strong commitment to sustainable development.

Funding objective

AgriFI invests up to € 5 M in Class A equity (long term investor, +7 years) in order to:

1. increase the size and scope of the Fund in order to impact a larger number of smallholder farmers engaged through their organizations in sustainable agriculture, with a special development focus in Africa
2. attract more senior finance by securing the Fund financial stability thanks to increased equity in the Fund: both private investors, subscribing to more liquid B-Shares, as well as long term lenders.

Investment rationale

The Fund has a clear development impact for smallholder farmers, by enabling them to invest in their land to raise crop yields, improve quality and get a fair return.

Beyond the certifications’ advantages, including the premium, having the FAF as a trade financing partner, greatly improves the bargaining power of the investees, mainly producer’s organisations.

Read more:

• Fairtrade Access Fund (FAF) | AgriFI
• AgriFI invests 5 million EUR in the Incofin Fairtrade Access Fund | AgriFI
• Incofin FAF